Saved Help Save & Exit Subm Check my work Paul Sabin organized Sabin Electronics 10 years ago in order to produce and sell several electronic devices on which he had secured patents. Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $500,000 long-term loan from Gulfport State Bank, $100,000 of which will be used to bolster the cash account and $400,000 of which will be used to modernize certain key items of equipment. The company's financial statements for the two most recent ipped years follow: eBook SABIN ELECTRONICS Comparative Balance Sheet Print This Year Last Year eferences Assets Current assets: Cash $ 57,400 94.000 Marketable securities 11,200 Accounts receivable, net 401,800 188,000 Inventory 805,000 376,000 Prepaid expenses 16.800 13.800 Total current assets 1,281,000 683,000 Plant and equipment, net 1,000,000 867,000 Total assets $2,281,000 $1,550,000 Liabilities and Shareholders' Equity Mc Pray 1 of 1 Next Graw Hill 10: 14 PM 9 ype here to search ODiscussions L X McGraw-Hill X Question 1 -1 x Netflix x Search Result x Homework H x Paraphrasing x What are five X + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%2525%252Flms.mheducation.com%252Fmghmiddleware%252F : Apps N Home @ Content Week 8 - Chapter 13 @ Saved Help Save & Exit Check my lotal assets non'nce it non 107 70 Liabilities and Shareholders' Equity Liabilities Current liabilities $ 668,000 $ 498,000 10 Bonds payable, 12% 300,000 300,000 points Total liabilities 968.000 798,000 Shareholders' equity: Skipped Preferred shares, no par ($6; 16,720 shares issued) 209,000 209,000 Common shares, no par (unlimited authorized, 22,000 issued) 220,000 220,000 Retained earnings 884,000 323,000 eBook Total shareholders' equity 1.313,000 752,000 Print Total liabilities and shareholders' equity $2,281,000 $1,550,000 References SABIN ELECTRONICS Comparative Income Statement This Year Last Year Sales $4,200,000 $3,650,000 Less: Cost of goods sold 3,227,000 2,880,000 Gross margin 973,000 70.000 Less: Operating expenses 546,000 457.000 Net operating income 427.000 313,000 I non- Intorant monanna 20 non Mc Prey 1 of 1 Next Grav Hill O PS Type here to searchNetflix x * Search Result x Homework H x Paraphrasing X What are five x + C 0 ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https*%253A*%252F%%252FIms.mheducation.com%252Fmghmiddleware% 252 ops Home Content Week 8 - Chapter 13 @ Saved Help Save & Exit Check m SABIN ELECTRONICS Comparative Income Statement 10 This Year Last Year points Sales $4,200,000 $3,650,000 Less: Cost of goods sold 3,227,000 2,880,000 Skipped Gross margin 973,000 770,000 Less: Operating expenses 546,000 457,000 Net operating income 427,000 313,000 eBook Less: Interest expense 36,000 36,000 Print Net income before taxes 391,000 277,000 117,300 83,100 References Less: Income taxes (30%) Net income 273,700 193,900 Dividends paid: Preferred dividends 20.000 20,000 Common dividends 75.600 62,700 Total dividends paid 95,600 82,700 Net income retained 178,100 111,200 Retained earnings, beginning of year 566.400 455,200 Retained earnings, end of year $ 744,500 $ 566,400 Mc Pray 1 of 1 Next Graw Type here to search O PSMcgraw-Hill ( x Question 1 - 1 x Netflix x Search Result x * Homework H x Paraphrasing x What are five X 4 ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmhepr Home Content Week 8 - Chapter 13 @ Saved Help Save & Exit Subn Check my work During the past year, the company introduced several new product lines and raised the selling prices on a 10 number of old product lines in order to improve its profit margin. The company also hired a new sales points manager, who has expanded sales into several new territories. Sales terms are 2/10, n/30. All sales are on account. Assume that the following ratios are typical of firms in the electronics industry: Skipped Current ratio 2.5 to 1 eBook Acid-test (quick) ratio 1.3 to 1 Print Average age of receivables 18 days Inventory turnover in days 60 days References Debt-to-equity ratio 0.90 to 1 Times interest earned 6.0 times Return on total assets 13% Price earnings ratio 12 Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this year and last year (Use 365 days a year. Round your intermediate calculations to 1 decimal place. Round nahtoto-agility ratio to ? decimal places and other answers to ? decimal placec 1. Mc Pray 1 of 1 Next Graw Hill 10-15 P 10 6260611320 Type here to search O X W PSQuestion 1 - 1 X Netflix C D x Search Result x Homework H X Paraphrasing x What are five * + Home @ Content ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A96252F%%252Fims.mheducation.com%252Fmghmiddleware%252Fmhepr. Week 8 - Chapter 13 @ Saved Help Save & Exit Submit Check my work Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this 10 year and last year (Use 365 days a year. Round your intermediate calculations to 1 decimal place. Round points Debt-to-equity ratio to 3 decimal places and other answers to 2 decimal places.): Skipped a. The amount of working capital. b. The current ratio. Book c. The acid-test (quick) ratio. d. The average age of receivables (the accounts receivable at the beginning of last year totalled $186,000). Print e. The inventory turnover in days (the inventory at the beginning of last year totalled $372,000). References f. The debt-to-equity ratio. g. The times interest earned. This Year Last Year Working capital $ 728 200 to 1 to 1 Current ratio Acid-test ratio to 1 to 1 days days Average age of receivables Inventory turnover in days I dave days 1 of 1 Next Mc Prey Graw 10:15 PM 11/3/2021 XE WI Type here to searchome & Content nal_browser=0&launchUrl=https%253A%252F%252Fims.mheducation.com%252Fmghmiddleware%252Fmhe eek 8 - Chapter 13 @ Saved Help Save & Exit Su Check my wor e. I ne inventory turnover in days (ine inventory at ine beginning of last year totaled $5 /Z,UVU). f. The debt-to-equity ratio. g. The times interest earned. oints This Year Last Year Working capital $ 728,200: Skipped Current ratio to to 1 Acid-test ratio to 1 to 1 eBook Average age of receivables days days Inventory turnover in days days days Print Debt-to-equity ratio to 1 to 1 References Times interest earned times times 2. For both this year and last year: (a) Present the balance sheet in common-size format. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 1 decimal place.) Mc Prey 1 of 1 Next Grav 10:1 PS 11/3 O WE Type here to searchHomework H. X Paraphrasing * What are five x + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08/launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware9252F Apps Home @ Content Week 8 - Chapter 13 1 Saved Help Save & Exit Check my 2. For both this year and last year: (a) Present the balance sheet in common-size format. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 1 decimal place.) 10 points SABIN ELECTRONICS Skipped Common-Size Balance Sheets This Year Last Year Current assets: eBook Cash % % Print Marketable securities References Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets 0.0 % 0.0 % Current liabilities % % Bonds payable. 12% Total liabilities 0.0 Mc Prev 1 of 1 Next Graw Type here to search*Search Result X * Homework H X X McGraw-Hill x Question 1 - 1 x Netflix X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https253A%252F%25 Home Content Week 8 - Chapter 13 @ Saved SABIN ELECTRONICS Common-Size Balance Sheets This Year Last Year 10 points Current assets Cash % % Skipped Marketable securities Accounts receivable, net Book Inventory Prepaid expenses Total current assets References Plant and equipment net Total assets 0.0% 0.0% Current liabilities % Bonds payable, 12% Total liabilities 0.0 0.0 Shareholders' equity: Preferred shares, no par, $6 Common shares, no par Retained earnings Mc Grav Prey 1 of 1 Next I Type here to search O X W PNetflix Search Result X Homework H > Paraphrasing * & What are five * + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fims.mheducation.com%252Fmghmiddleware%%252Fmhepr.. lome & Content Week 8 - Chapter 13 @ Saved Help Save & Exit Submit Check my work (b) Present the income statement in common-size format down through net income. (Input all values as positive values. Round your answers to 1 decimal place.) inits SABIN ELECTRONICS Skipped Common-Size Balance Sheets This Year Last Year Sales % % eBook Less cost of goods sold Print Gross margin References Less operating expenses Net operating income Less interest expense Net income before taxes Less income taxes % % Net income Prey 1 of 1 Next 10:16 PM raw 11/3/202 e here to search